Social Security Bait and Switch

I've sometimes noted in this space that BHO is either not too bright, or he lies.  Here is yet more evidence that prompts me to make such an observation.

Any social security plan that isn't based on sound actuarial calculations is a Ponzi scheme.  They put Bernie Madhoff in jail for that, but evidently, a giant Ponzi scheme is just fine for politicians.

We Have Been Down This Road Before

I love the sort of article you will find here.  Evidently, we need constant reminders that we have indeed been down this road before.

When we were doing the last presidential election, I noted to many friends that BHO pretty much had no experience doing much of anything.  Those friends always said, "not important; he will surround himself with people who do."  Yeh, right.  I guess those "surrounding folks" don't know much more economic history than BHO does.  We have been down this road before.

Is the Housing Market to Blame for Our Continuing Recession?

In a word, no.  In a recent post, I discussed the real reasons for our continuing recession.  Yesterday's dismal report of the drop in sales of existing homes leads many to believe that "its the housing market, stupid."

But the WSJ article here explains why that really just isn't the case.  All the liberal rags and other mainstream media  that point toward the housing market are using a simple diversionary tactic.  It's the government, stupid, not the housing market.

The housing market will recover precisely when the federal government gets out of the business of fostering massive uncertainty.  Governments cause recessions; housing markets don't.  This is all old ground, of course.  You can read more about it here, and here and here if you haven't already.

Why Do We Continue To Languish in the Great Recession?

Here, George Melloan provides an excellent explanation of our enduring recession and elevated unemployment numbers. Mr. Melloan notes,

"In the late 1970s, the last time Americans suffered from manic interventionism from Washington, we had 'stagflation,' a combination of minimal economic growth and double-digit inflation. It wasn't pretty." 

Simply stated, it takes intrusive government to create and sustain a recession.  That's because only an intrusive government (and its sidekick the Fed) can create sufficient uncertainty to cause large numbers of businesses and households to make poor economic decisions all at the same time.  Recessions don't just happen, and they aren't caused by any sort of naturally occurring economic phenomenon.  Since I've explained this proposition at length here, here, and here) no need to write it all again.

The economic recovery will begin and be sustained when and only when businesses and households can see a believable economic future.  Neither businesses nor households can see that future right now.  All they can see is BHO and crew on their relentless march toward ever bigger-government socialism and red ink for the foreseeable and imaginable future.

Please vote carefully in November 2010.  We've got the wrong bus driver (to borrow a favorite metaphor), and he'll be around at least until January 2013.  But we can slow him down in November 2010.  Join the NPB.  Read all about the New Blood Party here.

More Borrowing What Hasn't Yet Been Produced

Here, the WSJ chronicles the massive federal spending explosion since BHO and company took office. And just in case you were wondering, all that spending by the U.S. Treasury will likely come from new money created by the Fed, not from taxes or from the savings of households who choose to buy U.S. Treasury bonds with their saving.

But spending financed with new money is an attempt to borrow what has not yet been produced. As I've noted on more than one occasion, (here, for example) you can't borrow what hasn't yet been produced. Attempting to do so results in an economic mirage.  The latest example was the housing bubble that led to the great recession we are still trying to escape.

The growing red ink generated by BHO and his Democrat controlled Congress will not result in greater production of real goods and services.  And without greater production of real stuff, the unemployment numbers will continue to languish.

BHO's economists know what's going on.  But most of them continue spouting the party line.  All but Christy Romer, BHO's former Chair of the Council of Economic Advisers bailed.  I always knew she is a smart lady.

Speaking Up for Capitalism

Here, Gregg Sherrill offers his praise of capitalism, noting that,

"the Economist reports in a feature titled "The 70-30 Nation," the Pew Research Center asked respondents whether they were better off in a free market rather than a socialist economy "even though there may be severe ups and downs from time to time." Seventy percent said yes."

Mr. Sherrill then asks, "so why the 30% in charge of the 70%?  Good question, folks.

If 70% of Americans believe they are better off with capitalism, then why are we headed so far down the road to socialism?  Did people not understand that BHO is a socialist, elitist, paternalistic narcissist?

Events with General Stanley McCrystal demonstrate all too clearly that BHO has thin, self-adulatory skin.  BHO didn't fire McCrystal because he was doing a bad job; BHO fired him because BHO is a narcissist who can't tolerate criticism.

But I digress.  The real point of my message today is to applaud Mr. Sherrill for stating the obvious.  And of course, I will be quick to add that capitalism is the only moral social system available to humans, since it relies on voluntary exchange instead of compulsion to order society. 

By the way, the "severe ups and downs" referred to in the Pew Research Center poll are caused by government, not capitalism.  I have invited you to read about it here on several occasions.

BHO's Debt and Deficit Commission

Watch this video for an amazingly clear illustration of the scope of the problem we face with the federal budget and the national debt.

The problem isn't debt or deficit.  The problem is federal government spending.  In the end, folks, only one solution exists for the problem BHO's commission is supposed to address.  You already know what it is, don't you?

Mr. Mitchell Nailed This One

Read here Daniel Mitchell's entirely correct assessment of TARP and what's happening to the self-serving politicians who voted for it.  You go, Daniel.

The Regulators Continue to Fail

Read here about how Toyota has been hosed by the government and the federal government's evident desire to give an edge to GM (Government Motors).

"NHTSA has been able to verify only one of those fatal crashes was caused by a problem with the vehicle, according to information the agency provided to the National Academy of Sciences. That accident last Aug. 28, which killed a California highway patrolman and three passengers in a Lexus, was traced to a floor mat that trapped the gas pedal in the depressed position."

Guess what.  My floor mats sometimes get shoved out of place and interfere with the brake pedal and accelerator pedal.  I move the floor mats back into place.  Ah, duh.

Someone please tell us again why we should believe that the onslaught against Toyota has been anything except a government engineered assist to GM.  Regulators and regulations continue to fail, and they do it on your dime (oops, sorry; it's your trillions of dollars in taxes).

The Finance Reform Bill

For readers interested in truly expert analysis of the financial reform bill the Senate is about ready to pass, read these two links: here and here.

Once again, the Democrat led Congress is about to impose its will on we the people.  Yep, hosed again.  Come November, maybe we can all remember to follow the creed of the New Blood Party.  Read about that here.

Based on history, we have no reason to think the Republicans would be doing a better job than the Democrats.  For me, this isn't about party politics.  It's about liberty and American values.  Send a loud message.  Join the New Blood Party today.